Michigan Gov. Rick Snyder / Mandi Wright/Detroit Free Press

Detroit Free Press Lansing Bureau

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LANSING — Michigan Gov. Rick Snyder has signed a new emergency manager law that will take effect in the spring for financially troubled local governments and school districts, his spokeswoman said today.

Approval by the Legislature of the Local Financial Stability and Choice Act during the recent lame duck session was controversial because voters on Nov. 6 repealed the former emergency manager law, Public Act 4 of 2011.

The new law continues one of the most controversial provisions of PA 4 — the ability for emergency managers appointed by the state to amend or scrap collective bargaining agreements.

But Snyder and GOP legislative leaders say the new law allows for more public input and gives financially troubled cities and school districts a choice of four options — mediation; a consent agreement; an emergency manager; or Chapter 9 bankruptcy.

“This legislation demonstrates that we clearly heard, recognized and respected the will of the voters,” Snyder said. “It builds in local control and options while also ensuring the tools to protect communities and schools districts’ residents, students and taxpayers.”

Greg Bowens, a spokesman for Stand up for Democracy, the group that organized the referendum to repeal PA 4, said it’s not true that the new law respects the will of Michigan voters. Instead, it’s “a slap in the face” to those who voted to repeal the law, he said.

The new law, Public Act 436 of 2012, includes a financial appropriation which makes it immune to a referendum challenge such as the one that defeated PA 4. Another new feature is that the state, rather than the financially distressed local unit, will pay the emergency manager’s salary and certain other related costs.

Bowens said several responses will unfold which are likely to include legal challenges. Another possibility is a citizen’s initiative, which requires more signatures than a referendum but can defeat a law that includes a financial appropriation, he said.

The new law takes effect March 27 — 90 days after the Legislature adjourns for the year. That happened today in a brief ceremony.

Snyder spokeswoman Sara Wurfel said the emergency manager bill was among 19 Snyder signed today.

The suspension and later repeal of PA 4 led the state to revert to the law that was in effect even earlier, Public Act 72 of 1990. It provides for emergency financial managers who don’t have the power to scrap collective bargaining agreements or private contracts.

Emergency financial managers are now in place in Benton Harbor, Ecorse, Flint, Pontiac and Allen Park, and in the Detroit, Highland Park and Muskegon Heights school districts.

The city of Detroit is under a consent agreement signed pursuant to PA 4. The state recently began a new financial review for Detroit which could lead to appointment of an emergency financial manager.